On September 26, the Beijing Federation of Industry and Commerce and the People's Government of Tongzhou District jointly held the 2024 Beijing Top 100 Private Enterprises release conference. Officially released the 2024 Beijing Top 100 Private Enterprises '1+4' list.

It is understood that the Beijing Top 100 list has been released for seven consecutive years, with the entry threshold for the top 100 companies doubling, the scale of enterprises steadily expanding, and the industrial structure continuously optimizing, demonstrating strong development resilience and vitality in a complex and changing economic environment, injecting strong momentum into Beijing's economic development.

In this selection, a total of 1935 private enterprises in the city participated in the application. Among them, Crazy Sports (0082.HK) performed outstandingly in leading the rapid development of the capital's economy, driving the optimization and upgrade of related industries, practicing social responsibility, and other assessment indicators, successfully selected for the "Beijing Top 100 Private Enterprises in the Cultural Industry".

Crazy Sports' successful inclusion in the top 100 list this time was not accidental. As a leading domestic digital sports entertainment operator and a leader in the internet sports industry, Crazy Sports has deeply cultivated digital sports entertainment for decades, always taking content as its core, and technological innovation as an important support, governing to create a development ecosystem integrating content and technology.

Next, let's explore the logic and growth value behind Crazy Sports' inclusion in the list of top 100 private enterprises, starting from this list.

1. Fully leverage its own advantages to actively promote the digital transformation of sports culture and entertainment.

The Third Plenary Session of the Twentieth Central Committee proposed that through cultural institutional reform, cultural vitality and creativity should be stimulated to achieve spiritual wealth. Promoting the high-quality development of the cultural industry is an important content and inevitable choice to promote the construction of a cultural powerhouse. Enterprises are the key variables and links driving industry development.

In this "Beijing Top 100 Private Enterprises in the Cultural Industry" list, the contribution of enterprises to public cultural services, total revenue, net assets, etc., are regarded as core indicators. The contribution to public cultural services is seen as an important indicator reflecting the company's ability to provide cultural services.

As a leading digital sports entertainment company, Crazy Sports is committed to building a comprehensive sports and cultural entertainment ecosystem, serving a large number of sports enthusiasts. The company uses advanced big data and AI technology as the core driving force, leveraging its large user base and rich event data resources to continuously strengthen its position as a digital sports entertainment operator. With 'Crazy Single Ticket + Sports Lottery New Retail' as the main business line, and 'Events + Guessing, IP + Games' as the twin drivers, the company continues to expand its business scope and market share in the sports and entertainment field.

On one hand, Crazy Sports provides personalized sports content and intelligent service experiences to users through big data and AI technology. For example, the company's first sports + lottery AI assistant 'Ruyi' launched this year can not only provide users with more accurate and objective event prediction and analysis services but also bring users a better experience. This not only enhances user engagement but also improves operational efficiency for the company.

On the other hand, Crazy Sports continuously strengthens its event hosting capability through deep cultivation of event operations, channel communications, and sports entertainment, community, and industry operations. By hosting and participating in major sports events such as the WBC World Boxing Championship, the company fully utilizes its unique 'digital + sports' and 'sports + entertainment' resources. This not only significantly enhances the brand's visibility and influence but also solidifies the foundation for further expanding user base and market share.

Given the above actions, Crazy Sports not only continues to build a solid foundation for its own development but also provides valuable practical cases and solid support in promoting the digital transformation of the cultural industry in China and the deep integration of 'sports + culture + tourism' development, which is highly in line with the national policy trends. Therefore, being shortlisted for the 'Top 100 Beijing Private Enterprises in the Cultural Industry' is well-deserved.

Second, the short and long-term growth logic is clear, analyzing the true value of Crazy Sports.

From an investment perspective, Crazy Sports has attractive points in both the short and long term.

In the short term, with recent policy stimuli combined with interest rate cuts, the Hong Kong stock market has experienced a continuous rebound. In the past week, the Hang Seng Tech Index surged by 20.23%, with increases of over 13% in the Hang Seng Composite and Hang Seng Index among others.

In response to this, many institutions have also started to provide some guidance to the market.

Morgan Stanley stated that with the recent rate cuts by the Federal Reserve, the liquidity in the Hong Kong market may have greater resilience to the upside. Given the stronger profit revision trend, more attractive absolute valuations and A/H premiums, more supportive southbound fund flow, and higher sensitivity to the actions of the Federal Reserve during rate cuts, Goldman Sachs research department is more bullish on Hong Kong stocks.

Hang Seng Qianhai Fund Manager Xing Cheng expressed future focus on a balanced strategy, namely, on one hand focusing on opportunities in interest rate-sensitive industries in the growth track such as internet, electric vehicles, technology hardware, and biomedical sectors with longer durations, and on the other hand, focusing on high dividend yield targets with more certain shareholder returns. As a rare digital sports entertainment listed company in Hong Kong, Crazy Sports has a clear internet technology attribute, and is expected to follow the gradual improvement of Hong Kong's fundamentals, achieving simultaneous growth in volume and price.

In the long run, under the top-level design of a sports powerhouse, stimulating domestic demand through sports and creating new experiences in culture and tourism becomes an important focus. From the Asian Games last year, Shanghai's F1 race to this year's Paris Olympics, the stimulating effect on the development of culture and tourism for cities and countries is evident.

This also brings good development opportunities for companies developing sports event operation businesses like Crazy Sports. In 2016, the scale of China's sports event operation was only 17.68 billion yuan, by 2021, this number had grown to 34.3 billion yuan. Based on the increasing demand and spending on sports consumption by the public, as well as the strong supportive policies from the state for the sports industry, in the next five years, the scale of China's sports event operation market will gradually expand. According to the Head Panther Research Institute forecast, from 2023 to 2026, the scale of China's sports event operation market will grow at an annual compound growth rate of 13.35%, reaching 71.8 billion yuan in 2026.

Image Source: Head Panther Research Institute

Therefore, with the continuous enrichment of Crazy Sports' sports event intellectual property matrix in the future, under the application of technology innovation empowerment scenes, leveraging sports as the pivot, the company is expected to form a new productive force under the 'sports+' industrial structure, further benefiting from the rapid growth of the industry scale.

Currently, the company's PB ratio is only 0.68 times, and the P/S ratio is only 1.16 times. Faced with the continuous growth of the industry scale, this will continue to stimulate the capital markets' valuation imagination for Crazy Sports in the future. By then, how will Crazy Sports demonstrate its growth potential in the secondary market? Investors may want to wait and see.